De Lorenzo v De Lorenzo

The appeal concerned the construction of a will made by the late Mr. De Lorenzo, who bequeathed two shares in a company to his three children as tenants in common. The dispute arose from a specific provision in the will stating that if the shares were not divisible by three, his daughter would receive more. The primary issue was whether this provision entitled the daughter to both shares, or if it was intended to operate in some other way. The case was heard in the Court of Appeal of New South Wales.

The central legal question before the court was how to interpret the testator's intention regarding the distribution of the two company shares amongst his three children, particularly in light of the clause addressing divisibility by three. This required the court to consider the principles of will construction, the nature of joint ownership of choses in action, and the potential for ambiguity in testamentary dispositions.

The Court of Appeal determined that the testator's intention, as expressed in the will, was to ensure an unequal distribution in favour of the daughter if the shares could not be divided equally. The court reasoned that the phrase "if the shares are not divisible by three" referred to the practical impossibility of dividing two shares equally amongst three beneficiaries. Consequently, the court held that the daughter was entitled to both shares under the will.

Leave to appeal was granted, but the appeal was ultimately dismissed, with costs awarded to the respondents.